Connect with us

Hi, what are you looking for?

CleanTechnica
Two more project developers have signed financial risk agreements for utility-scale solar power projects in Nigeria, strengthening the country’s roadmap towards becoming a major solar power market in Africa.

Clean Power

Agreements Signed For 120 Megawatts Of Solar Projects In Nigeria

Two more project developers have signed financial risk agreements for utility-scale solar power projects in Nigeria, strengthening the country’s roadmap towards becoming a major solar power market in Africa.

Originally published on CleanTechies.

Two more project developers have signed financial risk agreements for utility-scale solar power projects in Nigeria, strengthening the country’s roadmap towards becoming a major solar power market in Africa.

Local companies Afrinegia Nigeria Limited and CT Cosmos Nigeria Limited signed put/call option agreements with the Ministry of Power Works and Housing. Afrinegia Nigeria Limited will develop a 50-megawatt solar power project while CT Cosmos Nigeria Limited will set up a 70-megawatt solar power project.

A put/call options agreement helps in the mitigation of financial risk to the project developers. These agreements transfer the payment risk from the state-owned company Nigerian Bulk Electricity Trading Plc (NBET) directly to the ministry.

The agreements are part of Nigeria’s push towards large-scale deployment of solar power projects across the country. In July of last year, Nigerian Bulk Electricity Trading (NBET) signed power purchase agreements with more than 10 companies willing to develop around 975 megawatts of solar power capacity.

Subsequently, more companies, including Scatec Solar, a joint venture of Nigus Greenergy and Volt Renewables, Phanes Group, and GreenWish Partners, also signed similar power purchase agreements with NBET.

In 2015, the Nigerian Electricity Regulatory Commission approved feed-in tariff regulations for renewable energy sourced electricity. As per the provisions of the regulations, electricity distribution companies will be required to source at least 50% of their total procurement from renewable energy sources. The Commission also mandated that the balance 50% electricity would have to be sourced from NBET.

Reprinted with permission.

 
 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica member, supporter, or ambassador — or a patron on Patreon.
 
Sign up for our free daily newsletter to never miss a story.
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.


New Podcast: Lyft's 100% Electrification Target, Autonomy, Charging

Written By

An avid follower of latest developments in the Indian renewable energy sector.

Comments

You May Also Like

Cars

Nigeria’s BrightCloud Automotive is hoping to jump into the electric SUV and pickup space, starting with its proposed Knight SUV that will come in...

Cars

The Hyundai Kona EV is now also on sale in Ghana! In both Nigeria and Ghana, Hyundai is only offering the longer range 64...

Cars

Africa presents an exciting opportunity in the electromobility space. Africa’s low motorization levels present an opportunity for another leapfrog event, like seen previously in...

Air Quality

Millions of used cars, vans, and minibuses exported from Europe, the United States, and Japan to the developing world are of poor quality, contributing...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.